(1991) Haïti: Vers la restauration de la croissance et du développement

Report No. 9523-HA Haiti Restoration of Growth and Development May 20, 1991 Country Department Ill Latin America and thc Caribbean Region FOR OFFICIAL USE ONLY 0~~~~~ 0 o~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~i I C:S~~~C (C Doumn of t5 Wol B Kb~~~~t). Thsdcmn hsarsrceddsrbto admyb sd yrcpet on. in th eomn&3 hi iildte. It otnsmy o tews be diclse wihu ol akatoiain 0 ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ . Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized FISCAL YEAR October 1 -September 30 WEIGHTS AND MEASURES Metric System CURRENCY AND EQUIVALENCY UNIIS Currency Unit -Gourde (G) US$1.00 G G 5.00 An economic mission visited Haiti ir, June-July 1990. The members of the economic mission were Feliciano Iglesias (Chief of Mission), Henri Henner (Consultant, Trade), Julio Linares (Water Supply), Adrian Guissari (Consultant, Public Finance), Marie-Helene Ewenczyk (Consultant, Education), Fernando Vio (Consultant, Health and Nutrition), and Coby Frimpong (Researcher). Christian Delvoie (Transport) and Carlos Mena (Consultant, Electric Power) provided inputs for the chapters on Transport and Electric Power sectors respectively. Jose Sokol (Lead Economist) travelled to Haiti in early March 1991 for an updating economic mission. He and Raj Nallari (Consultant) prepared the final draft of the report. Mrs. Maria Pilar Reyes has provided excellent secretarial assistance at all the stages of the report. FOR OFFICIAL USE ONLY GLOSSARY OF A8DREVIATIONS APN Autorite Portuaire National (National Port Authority) BNC Banque Nationale de Credit (National Credit Bank) BNDAI Banque Nationale de Developpement Agricole et Industriel (National Agricultural and Industrial Development Bank) BRH Banque de la Republique d'Haiti (Bank of the Republic of Haiti - Central Bank) CAIiEP Centrale Autonome Metropolitaine d'Eau Potable (Metropolitan Water Authority) CdH Cimente d'Haiti (Cement Plant) EdH Electricite d'Haiti (Electricitv Company) ENAOL Entrepise Nationale des Oleagineux (edible oil company) HA Hectare HASCO Haitian American Sugar Company ICOR Incremental Capital Output Ratio IDA International Development Association ILO International Labor Organization IMF International Monetary Fund MARNDR Ministere de l'Agriculture, des Ressources Naturelles et du Developpement Rural (Ministry of Agriculture, Natural Resources and Rural Development) MdH Minoterie d'Haiti (Flour Mill) MENJS Ministry of Education, Youth and Sports MEF Ministry of Economy and Finance MP Ministry of Planning and External Cooperation MSPP Ministere de la Sante Publique et de la Population (Ministry of Public Health and Population) MTPTC Ministry of Public Works, Transport and Communications NGOs Non-governmental Organizations NFS Nonfactor Services OFATMA Office d'Assurance--Accidents du Travail, Maladie et Maternite (Workers' compensation, sickness and maternity insurance agency) OPRODEX Office de Promotion des Denrees Exportables (Commodity Export Promotion Agency) POCHEP Postes Communautaires d'Hygiene et d'Eau Potable (Community Health and Drinking Water Posts) SEN Societe d'Equipement National (Construction) SEPPRN Service d;Entretien Permanent du Resseau Routier National (National Road Maintenance Organization) SNEP Service National d'Eau Potable (National Water Service) SONAPI Societe Nationale des Parcs Industriels (National Industrial Park Company) TELECO Telecommunications d'Haiti (Telephone Company) USAID United States Agency for International Development UNESCO United Nations Scientific and Cultural Organization USN Usine Sucriere du Nord (National Sugar Refinery at Citadelle) USND Usine Sucriere Nationale de Darbonne (National Sugar Refinery at Darbonne) This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. TITLE I HAITIs TOWARDS RESTOiATICN OF GROWTH AND DEVELOPMENT COUNT8IY a HAITI REGION t LATIN AMERICA AND THE CARIBBEAN SECTOR s COUNTRY ECONOMIC REPORT NO M E CLASSIF NM|YY ANGUAGES 9523-HA CEM Restricted 05/91 English PUBDATE ABSTRACT s Haiti's economy has suffered a decade of stagnation and disequilibrium caused in part by political instability. Ropulation pressure, inappropriate agricultural policies, protection in industry, trade distortions, fiscal indiscipline, and sharp reductions in foreign aid since 1988 have exacerbated the economic decline. A stable macroeconomic environment and clear rules of the game are needed to restore the confidence of the private sector for it to invest. To restore growth, the new Government needs to promote export- oriented agriculture and industry, and develop tourism in conjunction with domestic resource mobilization to finance much needed rehabilitation of infrastructure facilities, fiscal discipline, and tight monetary policy. The Government's role is found to be most productive if it invests in neonle (mainly primary education, basic health care, nutrition, and family planning), in infrastructure (operations and maintenance, rehabilitation of transport, power, water and irrigation systems) and concentrates in institution building (restructuring public utilities, improving civil service, technology transfer, and defining and protecting property rights). Growth in income should reduce poverty and infant mortality and raise life expectancy. At the same time, better primary health care and education, family planning and nutrition can, in their turn, promote growth. Opening up to trade promotes domestic and international competition leading to lower prices, importation of technology for productivity gains, and improvements in health and nutrition which is the hallmark of economic development. Haiti is beset by institutional weaknesses which result in haphazard policy implementation. Investment in institution building should be an ongoing process. Haiti is heavily dependent on external assistance from grants and at highly concessional terms to undertake priority investment, strengthen the institutional capacity, and embark on policy changes to avert further economic decline and restore growth and development. Paeg 1 of 2 HAITI -COUNTRY DATA SHEET Area: 27,600 sq km Population: 6.4 million (1989) Density: 228 per sq km Rate of growth: 1.8 X (1989) Population characteristics, Health Crude birth rate (per 1,000): 84.4 Infant mortality (per 1,000 live births): 117 Crude doeth rate (per 1,000): 12.7 Populntion per physician: 7179 Population per hospital bod: 1897 Income distribution Distribution of land ownership --_---------- I............... __ ......... ------------------------------ X of national income, highest quinti:s .. X owned by top 10X of owners: lowest quintile: X.. X wned by smallest IOX Access to safe water Access to electricity --_------------…---- --------------------- X of population -urban: 69 X of population -urban: 46 -rural: ao -rural: 8 Nutrition Education Calorli intake as U of requirements: 80 Adult literacy rte (X) : 62.4 Per caplta protein Intake (g/day): 80 Primary school enrollment (X) of relovent age group: 78 ONP per capita (S, 1989) 1/ : 400 GROSS NATIONAL PRODUCT, FY69 ANNUAL RATE OF OROWTH ( X , FY80 prices) US$ Mn X FY76-80 FY8O-86 FYS8-87 FY88 FY89 GNP at Market Prices 2662.8 100.0 6.2 -0.9 0.1 -1.6 -0.6 Gross Domestic Invostment 291.6 11.4 10.1 -2.1 -6.0 -1.0 -1.0 Gross National Saving 147.4 5.8 14.0 -8.6 -11.2 -1.9 -12.8 Current Account Balance -126.9 -6.0 Export of Goods, NFS 269.3 10.1 10.8 -1.8 -6.6 0.8 -0.5 Im"port of Goods, NFS 428.6 16.6 10.0 -2.9 -6.5 -1.1 2.2 OUTPUT, EMPLOYMENT AND PRODUCTIVITY IN FY89 Value Added Labor Force V.A. per Worker UsS Mn X Mn % US$ Agriculture 839.9 19.1 2.0 68.7 170.0 Industry 614.9 29.0 0.8 10.0 1716.8 F.rvices 922.1 61.9 0.7 28.8 1817.8 Tots. / Average 1776.9 100.0 8.0 100.0 692.8 GOVERNMENT FINANCE __________________ Consolidated Public Sector Goneral Government …__________________________ -------------------- G Mn Percent of GDP 0 Mn Percent of GOP FY89 FY86 FY89 FY89 FY86 FY89 Current Receipts 2097.4 18.1 17.7 1140.2 10.1 9.6 Current Expenditure 2189.0 17.7 18.6 1889.8 11.4 11.7 Current Surplus -91.6 0.4 -0.8 -249.6 -1.8 -2.1 Capital Expenditure 688.6 5.8 4.6 896.8 8.9 8.8 1/ World Bank Atlas methodology. Page 2 of 2 HAITI -COUNTRY DATA SHEET __________________________ MONEY, CREDIT A PRICES FY86 FY8S FY67 FY88 FY89 (Mn Gourdee outstanding et end of perlod) Broad Money Supply 2647.6 2e86.8 8188.6 8468.8 8909.2 Bank Credit to Public Sector 2160.2 2118.6 2199.8 2828.0 26&8.9 Bank Credit to Private Sector 1164.7 1172.4 1186.0 1279.2 1870.0 (percontage or Index numbers) Broad Money as U of GDP 26.4 26.8 29.0 81.8 88.0 General Price Index (FY80 = 100) 148.7 160.8 144.1 149.6 164.9 Annual percentage changes in: General Price Index P.4 8.6 -11.4 4.0 8.6 Bank Credit to Public Sector 12.0 0.9 8.2 8.0 9.1 Bank Credit to Privato Sector 8.8 0.7 1.1 7.9 7.1 BALANCE OF PAYMENTS MERCHANDISE EXPORTS (AVERAGE FY84-89) FY86 FY87 FY88 FY89 US$ Mn % (USS million) Coffee 42.8 20.8 Exports of Goods, NFS 291.6 281.6 278.4 269.8 Cocoa 4.8 2.8 Imports of Gooda, NFS 428.8 451.8 426.8 428.5 Essential Oils 4.3 2.1 ----- ----- ----- ----- Other Agriculture 6.7 3.2 Resource Gap (deficit -) -181.7 -170.8 -152.2 -164.2 Manufactured Goods 180.8 62.7 Other Commoditiea 19.8 9.5 Interest Payments (not) 9.1 8.4 6.8 10.9 ----- Other Factor Payments (not) 7.8 6.9 10.7 11.1 Total 208.7 100.0 Net Current Transfers 52.0 56.8 68.4 59.3 ----- ----- Balance on Current Account -98.4 -129.8 -106.3 -126.9 EXTERNAL DEBT, SEPTEMBER 80, 1989 Direct Pvt. For. Investment 4.8 5.0 10.1 9.4 --------------------------------- Not MLT Borrowing 88.0 66.2 84.4 15.6 Disbursements 48.8 67.0 48.8 28.9 USS Mn Amortizotion 10.8 11.8 18.9 18.4 ------ ----- ----- ----- ----- Pubi.c Debt, incl. Guaranteed 760.0 Subtotal (Dir.Inv.+Net MLT) 87.8 60.2 44.6 24.9 Non- '-iwrantecd Private Debt Tote( Outtsanding A Disbursed 760.0 Other Capital (not) and Capital n.e.l. 89.8 104.6 122 93 NET DEBT SERVICE RATIO FOR FY87 2/ Increase In Reserves (-) -81.2 -86.6 -60.2 9.0 Public Debt, Inel. Guarantee 19.8 Non- Ousrents"d rivate Debt Gross Reserves 1/(end-year) 16.7 28.6 22.8 21.8 Total Outatanding A Disbursed 19.8 RATE OF EXCHANGE IBRD/IDA LENDING (Sept. 80,1987) Annual Avereg ,and of period) ISRO IDA FY86 FY87 FY88 FY89 (US$ Mn) ---- ---- ---- ---- Outstanding A Disbursed 0.0 268.8 US81.00 = a 6.00 6.00 6.00 6.00 Undisburaed 0.0 82.6 C1.00 = USS 0.20 0.20 0.20 0.20 Outstonding incl.Undisbursod 0.0 846.9 1/ Includes gold holdings. 2/ Debt service, net of Interest earned on foreign exchange reserves, as a percentage of Exports of Goods and NFS. HAITI: TOWARDS RESTORATION OF GROWTH AND DEVELOPMENT TABLE OF CONTENTS Page No. COUNTRY DATA SHEET ABSTRACT SUMMARY AND CONCLUSIONS ........................ 1. INTRODUCTION: THE BACKGROUND TO RECENT DEVELOPMENTS .....1 Overview ...... ..............1 The Previous Report: A Background ...... . .... 2 Disequili's-ium .. . . . . . . ... 2 Advent of New Policies ........ ....... 4 II. RECENT ECONOMIC POLICIES AND PERFORMANCE ...........6 Macroeconomic Overview .. ..... ........... Balance of Payments and External Debt ............9 III. DEVELOPMLNT POLICIES AND PRIORITIES .............11 Priority Economic Objectives and Strategy .........11 IV. PUBLIC FINANCES .......................16 Overview .. * .* .. * ..* * * ..* *. 4 4. ..16 Current Revenues ........... .. .... 16 Current Expenditures . 19 Public Investment .....19 Public Enterprises .................... 20 Finances of the Consolidated Public Sector ........23 Main Issues .a 4 * .*. * * . .. * * * 4 4.* o .* *. .24 V. FOREIGN EXCHANGE ANDMPNETA YPOLICY ............25 Overview ...* * * * . ... .. 25 Main Issues ... * ... .. .. . 28 VI. INDUSTRY AND TRADE ......... ... .. ....... 29 Overviev ....... ................ 29 The 1986-87 Reforms ................... 31 Impact of Reforms ........44444 32 Remaining Distortons ... ........... 33 Main Issues .. * a 4 * * * 4 & * * * * * * * * ... 34 VII. AGRICULTURE ........................35 Overview .......... . 35 Sectoral Performance ............... *... 36 Economic Policy Framework. ...... .. ....... .36 VIII. THE TRANSPORT ECTOR ...................40 Overv4ew * ...o .. ... . . ..4* * * * ..40 Main Issues .......................42 TALE OF CONTENS, (Continued) Pa8g No. IX. ELECTRIC POWR .......................44 Overview .a .........* ....., .., .....44 Main Issues .*. ......... * * * . * .* * * * * * * 45 X. WATER MIDSANITATION .................... 46 Overview ..............a ....* .....46 Sector Institutionso .......... .......... 47 Constraints to Sector Development 9 * * * * * ...... .48 Main Isues ........ * .....* ........ ..48 XI. ALTH AnD RITION o .......*. ...........49 Overview .... . * * * * * * * 49 Health * * * * . * .. * . * 50 Health Care System .......... ........ 51 Health Financing ................... 52 Main Issues ....... ........* * . 9 ..*.*.......*.53 XII. EDUCATION .........................54 Overview ....... ..9.. 54 Main Issues 9..**999. * * * o 9 9 * * * .9 * 56 XIII. MEDIUM-TERM RWTH AND BALANCE OF PANS PROSPECTS ...58 Overview .*.. .o .* ..... 9 9 9 * .. 9 .o * * * 58 Macroeconomic Framework ..9.9.9.9.9.999. 9999999 ......... 59 Public Sector Investment Program ...........e e 63 External Financing Requirements for Investment .* . ..65 STATISTICAL APPENDIX RAP (IBRD 21143) AUPEII HAITI TOWARDS RESTOPATION OF GROWTH AND DEVELOPMENT 'TATISTICAL APPENDIX POPULATION AND EMPLOYMENT 1.1 Population by Sex and Age: 1950, 1971, 1982 Censuses and Estimates for 1982-83 to 1986-87 1.2 Urban and Rural Population: 1950, 1971, 1982 Censuses 1.3 Crude Population Birth, Death, Migration and Net Grovth Rates, 1971-82 NATIONAL ACCOUNTS 2.1 Gross Domestic Product by Expenditure at Current Prices, FY75-89 2.2 Gross Domestic Product by Expenditure at Constant Prices, FY75-89 2.3 Gross Domestic Product by Industrial Origin at ConstAnt Prices, FY80-89 2.4 Key Macroeconomic Indicators, 1990-99 2.5 National Accounts, 1990-99 BALANCE OF PAYMENTS AND TRADE 3.1 Balance of Payments, PY80-89 3.2 Composition of Merchandise Exports, FY80-89 3.3 Volume, Unit Price and Value of Principal Commodity Exports, FY8O-89 3.4 Exports of Light Manufacturers to the United States, f.o.b., FY8O-89 3.5 Composition of Imports, c.i.f., FY80-89 3.6 Imports of Petroleum Derivatives, FY82-89 3.7 Services Account in Balance of Payments, FY8O-89 3.8 Direction of Trade, FY8O-89 3.9 Balance of Payments, 1990-99 EXTERNAL DEBT AND GRANTS 4.1 Medium and Long-Term External Debt, FY82-89 -Bilatoral Creditor. 4.2 Medium and Long-Term External Debt, FY82-89 -Multilateral Creditors 4.3 Medium and Long-Term External Debt, FY82-89 -Suppliers' Credits 4.4 Medium and Long-Term External Debt, FY82-89 -Private Financial Institutions 4.5 Medium and Long-Term External Debt, FY82-89 -Total All Creditors 4.6 Grant Die)ursements by Donors, FY80-89 PUBLIC FINANCE 5.1 Public Sector Budgetary Operations, PY80-89 5.2 Composition of Treasury Revenues, FY8O-89 5.3 Economic Classification of Govern-nt Current Expenditures, FY82-89 1U RY AND CONCLUSIONS i. Over the past decade, the people of Haiti have suffered major losses in their standard of living. Failure in sustaining ecor.omic growth over a long period of time has been a source of major frustrations and of increased poverty. The economic performance has been especiallv disappointing because a wide cross-section of the population, in rural areas and in urban centers, has not been able to share the fruits of development as in many other developing countries in the world. Instead, GNP per crpita in 1989 was US$400, the second lowest level recorded in the Western Hemisphere. ii. Economic developments in Haiti have continuously been affected by political instability that has prevailed over the years. The coming into office of Haiti's democratically elected Government provides a window of opportunity for the country to finally move towards susta4ned social and economic progress. In many ways, the economy and its economic policy are at a crossroadss important decisions regarding the country's development potential need to be made with urgency. A variety of favorable factors which benefqtted the country in the past are less likely to be at hand in the future. Coffee, cocoa, and sugar, major sources of past agricultural growth, face unpromising prospects, and other agricultura' exports have stagnated. Meanwhile, domestic production costs for agriculture have mounted, adoption of new technology has lagged, supply problems exist for many commodities, and Haiti's agricultural export prospects are clouded by distortions and inefficient use of resources. Consumers' welfare has been lowered by higher monopoly prices. Exports from the free zone have declined, and tourism, a potential source of foreign exchange and employment has dramatically diminished. At the same time, Haiti's dilapidated infrastructure has been left largely unattended. At a time when most old problems remain and new constraints are emerging, new economic policies which will contrib;-te to a revitalization of agriculture and manufacturing, and to the development of tourism, are direly needed. However, the economy does not suffer from the excessive regulations that has impeded the progress of many other developing countries. The prices of most of the goods and services are not subject to government controls, and a substantial trade liberalization has taken place. Thus, there are important positive elements in the framework of incentives for private sector production and investment. Structure of the R iii. This report reviews in Chapter I the economic developments in Haiti following the economic reform efforts of 1986-87, which were interrupted by political crises. Chapter II details the recent economic performance. Except for an improved economic performance during 1986-87, the decade of 1980. is characterized by negative growth in output, high levels of unemployment, rising inflation, unsustainable fiscal and balance of payments deficits, breakdown in the provision of general services, and sharp changes in external assistance. Taking into cot 'deration the depressed economic situation, this report outlines in ter III a development strategy that should bring about short term relief without jeopardizing the longer term development needs. Short-to-medium term policies are needed to correct -ii - internal and external imbalances, attract private investment, and encourage external assistance in an effort to ccunter the forces of downward spiral and restore growth in output and employment. Past macroeconomic policies have resulted in an uncompetitive, inefficient, and inequitable economic system. A rev;ew of these :.ssues is detailed in Chapter IV through VI, which deal with public finance, exchange rate and monetary pclicies, and industry and trade respectively. The sectoral issues and policy requirements dealing with microeconomic efficiency and improvement of services are discussed in the next six chapters. These pertain to agriculture, transport, power, water and sanitation, health and nutrition, and education. Haiti needs to urgently attend to its development problems. Chapter XIII illuetrates the medium t growth and balance of payments prospects taking into consideration current economic conditions and the impact of the proposed policy changes. The investment needs of the domestic economy are derived considering the growth prospects and the urgency of rehabilitating systams in critical sectors. Therefore, Haiti has to depend heavily on external capital inflows. It is projected that barring any severe exogenous shocks, Haiti should be able to arrest its economic deterioration and restore growth in output and employment should it undertake the needed institutional and economic policy changes with the support of external assistance. Recent Economic Developments iv. Rapid economic growth during the late 1970s was achieved through the interaction of private sector dynamism in exports of agriculture crops and assembly manufactures, and public sector investment in infrastructure, basic services, and tourism. This spurt in economic activity was short lived as the Government increasingly intervened, albeit moderately, by employing fiscal and trade practices that were both restrictive of the private sector and bit ad against exports. However, the small size of the internal market has resulted in the evolution of private monopolies in cement, sugar and oil. Barriers to entry exist in the coffee exporting sector, and importers collude, hoard and speculate in trading of some essential items. The Government also created monopolistic public enterprises and squandered public expenditures without increasing productive capacity. This resulted in an inefficient and inequitable economic system which significantly eroded the country's incomes, living standards, and financial health. During 1980-85, production declined markedly in all sectors. This depressed the economic situation, lowered domestic savings and private investment, and led to internal and external imbalances which resulted in higher inflation, exchange rate misalignment, and the draw down of scarce international reserves. v. Faced with economic decline and rising unemployment, Haiti pursued wide ranbing economic reforms during 1986-87, which focused on reform of taxes, public expenditures and investment, industrial incentives, trade reform, and agricultural pricing. The reform measures began to stabilize the economy which recorded modest improvements in the growth rate of real GDP. Internal and external imbalances continued to be brought down, inflation was reduced as monetary financing of the fiscal deficit was minimal, and employment grew at 1.6X per year. The reforms were supported by substantial commitments of external assistance. -iii _ vi. In aid-1987, a aories of political crises erupted. Economic developments since then have been ch%racterized by work stopp4ges, uncertainties for private investors, shortfAlls in public revenues, curtailment of externsi assistance, accumulation of external payments arrears, and pervasive econonic deterioration. As a consequence of the gravity of the situation, in 1989 the Government adopted a stabilization program to strengthen public finances, stabilize the balance of payments, reduce inflationarv pressures, and reverse the decline in investment and economic activity. The program objectives could not be achieved as the fiscal deficit widened because of revenue shortfalla and resulted in domettic credit exranding more rapidly than contemplated. New external payment arrears were incurred. In 1990, the C3vernment took a number of actions to strengthen the monetary and external policies. Hbwevar, these were insufficient and the economic situation further deteriorated. vii. The new Government (during February-May, 1991) has taken some measures to improve its fiscal revenues, counter the contraband activity, promote tourism, and encourage the private sector. Import duties have been reduced on rice, pork, iron, tin sheets and tools. All taxes and duties on rice have been removed and only a US$2.50 tax per bag is being levied (price of each rice bag is US$40 now). Moreover, rice imports do not need an import license now. There are no price controls, but the Government did intervene to control the prices of some essential items during March-April 1991. This was for a short duration aA hoarding and speculation drove up the prices of some essential items. The Import licensing system is now flexible and even cement can be imported freely. The Government has streagthened the Customs Administration by tightening up control over ports, changing custom officials, and introducing new rules, which has resulted in increasing revenues and lowering of contraband activity. A small bureau of tourism has been established and negotiations with tourist agencies/shipping lines are in incubation. Develoyme_t Strate2v. ObJectives. and PoliciL viii. The new Government's intention is to undertake a development strategy that will increase the quality of life for all Haitians. Thia calls for a complementary role for the private and public sectors, a stable macroeconomic environment, openness to trade, and promotion of domestic and international competition. Rapid development of other low-income developing countries suggests that private production and trade is enhanced by the Government providing a stable macroeconomic foundation by maintaining fiscal discipline, eliminating distortions in tariffs, taxes, and excise duties, maintaining a market determined exchange rate, eliminating artificial barriers to entry of new entrepreneurs, such as licensing, regulations and permits, providing ar:cess to credit and financial institutions, and providing adequate infrastructure support. History of development in many developing countries suggests that the Government's role is found to be most productive if it lnvests in People (mainly primary education, basic health care, nutrition, and family planning), and in infrastructure (maintenance, and rehabilitation cf transport, power, water, and irrigation systems), and concurrently -iv - concentrates in instutu£ipn_building (restructuring public utilities, improving the quality of the gatherin8 and disseminating information to facilitate civil service, technology transfer, and defining and protecting property rights). ix. Economic development needs an efficia.ltly operating private sector, aided and abetted by a responsible Government. The private sector and the public sector are not substitutes but are intrinsically bound together in making the whole of economic gain greater than the sum. Fiscal discipline will result in reduction of wasteful public spending, and lower money financing and taxation to cover the fiscal deficit. This translates in'o lower inflation and more take-home pay which will be beneficial to all Haitians, particularly the poorer segment of the population. Elimination of export taxes will result in farmers receiving higher farmgate prices, thus enhancing production. Distortions in tariffs and misalignment of exchange rate will only encourage contraband activity which is detrimental to consumers. Eliminating barriers to entry for new entrepreneurs along with access to credit will enable more production, exports and employment. Tariff protection and import licenses nave resulted in collusion among importers, generation of "rents" and subsidies to producers of rice, sugar, flour, maize and sorghum, which &re not in the interests of the common Haitian. Similarly, inefficient public enterprises provide inadequate services at higher prices and further financially burden the average Haitian when these enterprises operate in deficit. Opening up to trade brings in its train, competitiveness along with medical, engineering, and scientific technology. Technological change will increase productivity and produce sustainable economic development as reflected in higher quality of life and improvements in health and nutrition. X. The country's main development obiectives are to: (i) achieve a minimum real GDP growth averaging about 32 per year during 1992-94 and around 4% during 1995-1999. This would translate into a real per capita income growth of 1.2% per year during the 1990s, which would constitute a reversal of more than a decade of negative growth and increased poverty; (ii) increase employment at a minimum of 4% per year; (iii) improve the efficiency in the provision of social services, especially in health and education. Growth in income should reduce poverty and infant mortality and raise life expectancy. At the same time, better primary health care and education, family planning, and nutrition can, in their turn, promote growth; and (iv) achieve economic efficiency and equitable development through democratic means. xi. A stable macroeconomic environment is one of the most important public goods that the Government can provide. When in the past, government spending was not controlled, the result was often large fiscal deficits, excessive borrowing and/or monetary expansion, quickly followed by inflation, chronic overvaluation of currency, and loss of export competitiveness. Restoring the confidence of the private nector As now a major challenge for the Government after the country's long history of macroeconomic instability. Imbalances in fiscal accounts is the main policy issue in Hai-. Thu3, the macroeconomic policies proposed in this report focus on strengthening of public finances while reducing the size of the public sector, strengthening -v- monetary and exchange rate policies, and eliminating the remaining distortions in agriculture and ii;dustry. Fiscal discipline should be achieved, and public savings raised to finance much needed investments in critical sectors. xii. The diversity of financial sources increases the difficulties in project coordination. Within the Haitian administration, both the MEF (Ministry of Economy and Finance) and the MP (Ministry of Planning and External Cooperation) have shared responsibilities in the area of public investment. The MEF is responsi. .e, through the budgetary process, for the allocation of resources to line ministries and public enterprises. The MP is responsible for the overall public sector investment program but has no responsibility regarding public enterprises. As a result, there is no clear definition of overall responsibility for public investment. On the other hand, because donors channel a substantial part of their funding directly to public sector agencies and NGOs, neither the MEF nor the MP have relevant information on the projects involved. Thus, the total amount allocated is not known. Moreover, donor records show that the investment levels are much higher than those recorded by the MP. Despite all of this, the fact is that public investment has fallen drastically, from 10.82 of GDP in FY84 to just 5.8% in FY89, reflecting both the curtailment of external resources and the decreaae in domestic resource mobilization efforts. The latter fell from 16.5% of GDP on average during FY81-85 to 11.22 of GDP during FY86-89. There is a need to redefine the roles of MEF and NP. MEF should be responsible for budgetary allocation for public investment and performance review of line ministries and public enterprises. The MP should be responsible for investment programming and donor coordination. xiii. Both the overall level and the structure of investment expenditures were significantly below the country's needs. Public sector savings have decreased when doaor financing has been curtailed. (Domestic resource mobilization efforts have been positively correlated with the flows of externally financed investments.) The reallocation of budgetary resources has favored current expenditures, particuilarly wages. This rising trend necds to be reversed, as it is incompatible with two important Government's objectives: (i) increasing efficiency in resource use; and (ii) providing the counterpart funding to external assistance necessary to support a larger public investment program. Increasing public savings however will not be an easy task, particularly because of the need to reallocate public investment to the education and health sectors, where the recurrent expenditures needed to utilize and maintain new investments are high. xiv. When net foreign inflows were at their peak, much of the investment was directed towards public enterprises that have not only become a fiscal burden but are also unable to provide adequate services. In the past, government operation of the enterprises as state monopolies resulted in generating revenue for the budget. In recent years, they have become a drain on the budget. Moreover, these enterprises do not pay income tax, sales tax, or any other taxes. In the absence of privatization or leasing arrangements, and given the history of their inefficiency, they will increasingly require Central Bank financial support. Minoterie d'Haiti (MdH) and Ciment d'Haiti (CdH) were private owned until their nationalization in the early 1980s. _ vi - While in the private sector, both Mdi and CdH competed internationally to export cement, and were generating overall surpluses. Since in recent years, these two enterprises have become a fiscal burden, the Government should contract private firms to manage and Improve their finances, open up these enterprises to international competition and pricing so that domestic consumers benefit and exports are resumed. Private participation by selling stocks and s4iares should be considered by the Government. Private monopolies should not be replaced by public monopolies and vice-versa. Interventions to eliminate these public monopolies should be given high priority. In other cases, such as power, water or telecommunication., an adequate regulatory framework is necessary. In most cases, these enterprises are in deficit and provide a poor service. In other., such as Telecommunications d'Haiti (Teleco), they generate revenues for the Government. Further creation and expansion of public enterprises should be avoided because the public sector is overstretched and its resources are needed to invest in people and infrastructure. Talented managers and professionals are used to run these public enterprises, while their services are most needed elsewhere in the Government to ensure development. xv. Despite the relatively optimistic prospects for fiscal improvement, reeources will hardly be enough to finance an adequate public investment program. At best, general government resources can be mobilized to provide counterpart funds for a higher level of public investment financed from external resources. Recourse to cost recovery schemes (power, irrigation, water, sanitation and social services) should mobilize additional domestic resources for this purpose. The availability of counterpart funding for foreign financed projects could also be addressed through reducing current outlays. Rationalization of public expenditures through retrenchment should free resources for improving in efficiency. Additionally, improved tax administration should raise fiscal revenues. Broadening the base of the value added tax, which was introduced in 1983, and raising the tax rate on and collecting property taxes will contribute to fiscal revenues. However, equally important to generating counterpart funds, is to address the issue of the public sector's absorptive capacity, particularly to broaden services in the health and education sectors. xvi. To create a favorable macroeconomic environment the Government needs to reduce inflation and maintain a market determined exchange rate to correct imbalances in external accounts. Since 1987, monetary financing of the fiscal gap has generated inflation. Further, the 401 foreign exchange surrendering requirement has created a dual exchange rate regime, which was implicitly equivalent to a 152 export tax. This is partly responsible for spurring export contraband activity. Two short-term actions are proposed: (i) the unification of the exchange rate regime at the current market determined rate; and (ii) the elimination of the export surrendering requirement. If the Government were to require foreign exchange to service its external obligations (i.e., petroleum imports and debt service), it could purchase it from the commercial banks. Alternatively, the Government could retain the proceeds from the foreign exchange surrendering requirement, but pay for the foreign exchange at the market determined rate. Appropriate market based incentives for saving and investment are essential if domestic -vii - resources are to play their proper role in financing development. An undesirable feature of the regulatory framework of the financial system has been that loans are subject to a maximum limit of 22% on interest rates, which should be eliminated. Uniformity of reserve requirements should be gradually reestablished. Further, the reliance on reserve requirements to help finance the public sector has contributed to the emergence of a large spread between lending and deposit rates in the banking system. Hence, alternative credit control instruments such as open market operations should be explored. Meanwhile, it is feasible to narrow the reserve requirements while concurrently intensifying the fiscal efforts. The supervisory powers of the Central Bank have to be enhanced and prudential regulations need to be introduced. xvii. In agricultural trade, the main policy issue is that the allocation of resources continues to be distorted in favor of import substituting crops. Trade needs to be promoted by eliminatins quantitative restrictions on sugar, rice, flour, maize, beans, chicken parts, and pork meat parts; and by reducing incentives to contraband by instituting a 5% uniform import tariff rate. All imports should be subjected to the consumption tax. The Investment Code should be revised and harmonized with the revised tariffs; public enterprises exemptions should be eliminated so as to promote domestic and international competition, especially in cement and flour. Coffee export sector needs new investment to undertake replanting and pruning. xviii. The Government can foster domestic competition by: (i) avoiding interventions, except as a last resort when markets fail; and (ii) providing public goods, which traditionally are "law and order" issues such as, protecting private property and environment. An efficient domestic economy requires public goods, such as a regulatory framework that enhances competition and protection of well defined legal and property rights. For instance, property rights and the tenure system will provide much needed security for the small farmer. It also requires adequate public investment in infrastructure, so as to increase returns to private investment. Opportunities for partnership between public and private sectors, perhaps in tourism, need to be sought out and exploited. The private sector should be encouraged to provide services often associated with public domain: social services, transport, telecommunications, agricultural research and extension, small-scale rural credit and environmental protection. The Government should support private trade and production by provision of adequate infrastructure and utility services. As a result of the general breakdown in these services, immediate actions are needed. xix. To enhance agricultural output, the Government should facilitate credit access to farmers by abolishing legislation precluding use of land as collateral, and developing a regulatory and supervisory framework for credit unions; enable legal titling and tenure security through legislation and administrative work; rehabilitate irrigation systems; and undertake and coordinate research on several promising crops. The Government should enhance environmental protection by improving forest management, increasing forested areas by transferring and rezoning State lands as national parks and forest reservee, and developing a legal and institutional framework for -viii - environmental regulation. Protection has encouraged growing of annual crops which hasten soil erosion, whereas coffee growing is ecologically sound. Finally, introduction of cost recovery to cover operations and raaintenance costs, water fees, and leasing of State lands at market rates will add to fiscal revenues. xx. The single most important issue in the transport sector is the lack of financing to carry out road maintenance and rehabilitation programs. Road user charges have been broadly adequate, but they have been used to finance general government expenditures. Resources have not been efficiently used by the Ministry of Public Works, Transport and Communications (NTPTC) and mostly allocated to pay excess personnel. At the same time, the tax base has been eroding over the last few years as petroleum taxes have progressively declined, vehicle registration taxes have been kept low, and tax evasion increased. Earmarking of funds from uaer charges for road maintenance and rehabilitation should be introduced. A special fund established from receipts on petroleum taxes, vehicle registration and licensing fees from users should be used for road maintenance and pollution control. MTPTC needs to rationalize its expenditures by a combination of retrenchment, reduction in the wage bill, and reduction in operating costs. Expansion of capacity and maintenance should be increasingly contracted out to the private sector. Finally, construction of penetration roads to service remote rural areas should be given priority. MTPTC's areas of operation are ever growing. It now covers urban development too, which is in need of additional investment. xxi. The country is under an electrical power crisis. Because of the lack of funds, spare parts needed to make two main diesel generating units operational cannot be purchased. The electrical power crisis has severely impaired the efficient capacity utilization in productive sectors. The poor service has annoyed consumers resulting in revenue losses for EdH. Donors have financed the lease of 13 small diesel generating sets for five months in order to bring efficiency to an acceptable level. However, this will not sustain reliability of service because of the lack of reserve capacity. The power crisis should be resolved immediately if growth is to be restored in the productive sectors and tourism. xxii. Electricite d'Haiti (EdH) should improve its financial position by a combination of price differentiation, adequate tariffs to generate sufficient finances, cut backs in personnel, and elimination of non-technical losses from non-metering. Over the medium-term, it will be necessary to contract out the operations and maintenance of all diesel plants to improve the service. Restructuring and privatization of EdH should be examined. xxiii. The Government should strive to attain higher service coverage levels in water and sanitation. A merger of Service National d'Eau Potable (SNEP) and Postes Communautaires d'Hygiene et d'Eau Potable (POCHEP) should eliminate overlapping of responsibilities. The sector's financial position should be improved by price differentiation between commercial and residential, urban and rural consumers, and reduction in staff. To improve service and coverage, professional managers should be brought in and in the medium term privatization of water services should be considered. The -ix - Government should invest in rural areas and emall towns and create a small agency to enforce envircŽnmentally sound regulation of coastal aquifers. xxiv. The health sector is characterized by its extreme inefficiency. Despite substantial total outlays on health and nutrition programs, progress in improving health conditions has been highly unsatisfactory, particularly when compared to many other countries where the mortality and morbidity rates have been reduced more rapidly with considerably lower expenditures. The activities of Ministry of Public Health and Population (MSPP) and Non- governmental Organizatic s (NGOs) should be coordinated to eliminate redundancy. Emphasis should be placed on preventive rather than curative medicine, on the provision of water and sanitary facilities and on nutrition and nutrition-education programs. Malaria prevention should be given the highest priority by these agencies as malaria is a major impediment to tourism growth and foreign investment. Food delivery campaign targeted on high risk infant groups should be introduced. xxv. The demographic challenge facing Haiti since the early part of this century has resulted in a relentless pressure of population on its limited natural resources. The relatively high population growth of 1.8% per year is a result of high total fertility rate (combined with reduced infant and child mortality) and the inability of contraceptive distributive systems to rapidly expand in rural areas. The 1987 survey suggests that total fertility rate has risen and is now about 6.8, and that less than 5% of married women use modern contraceptives. A series of activities are needed to strengthen family planning, maternal and child health. These activities are: (i) delivery of family planning services at the clinical and community level; (ii) implementation of procedures for screening and referring women at obstetric and reproductive risk; and (iii) spread of knowledge about family planning programs through mass media, printed materials, and video cassettes. xxvi. The salient features of the inadequacies of the Haitian education are the limited enrollments, low quality of instruction, and inefficient management of educational resources. The emphasis should continue to be on primary education. An updating of national policy on educational priorities and programs should be undertaken focusing on an institutional assessment of the sector entities and the definition of their respective mandates; finalization of the curricula; the financing plan for the sector and the amount, modalities and conditions of the contribution of the national budget to private education to ensure free enterprise efficiency, expanding coverage and quality of teaching; the official approval of a set of educational materials support in production, distribution and use of materials; the definition of cost recovery procedures in public schools; the definition of an action plan to reduce dropout, repetition and the incidence of overaged students, and the updating of school construction norms and definition of maintenance norms and modalities. Given the contributions of the private sector to education and its role in attracting needed external contributions to the sector, a long-term private investment program in collaboration with the authorities is also needed. xxvii. Notwithstanding the recent political and economic instability and current financial constraints, several factors are favorable to the improvement of the quality of basic education in Haiti today: (i) Haiti has many dedicated educators with good expertise; (ii) the unabated demand for education even among the poorest rural families has been associated with the development of a responsive and cost-effective private sector; (iii) the recent evaluation of the 1982 reform provides well-defined and broadly accepted areas for further sectoral development; (iv) a successful experience with public subsidies to private rural schools initiated under IDA's Fourth Project has helped identify options for an improved partnership and future investment; above all (v) the Government's support which had been lacking since the launching of the reform can now be harnessed for the benefit of the sector; and (vi) the United Nations Development Progra a (UNDP) and other agencies and donors are committed to supporting the development and implementation of a realistic sector policy. xxviii. The successful implementation of macroeconommic and sectoral policies detailed in this report should help reverse more than a decade of economic decline and sharp reductions in the living standards and the provision of essential services. However, some aspects of the policies could impose additional hardship on certain segments of the population. These vulnerable groups are the rural and urban poor, elderly people living on pensions, the unemployed and underemployed, and the laid off workers of the public sector as a result of its rationalization. xxix. In order to protect these vulnerable groups during the process of adjustment, the Government should design and implement a social sector program that focuses on ameliorating the additional hardships. The program's components should include: (i) creating employment to improve incomes of some of the vulnerable groups through labor-intensive small projects and schemes; (ii) providing complementary social services, such as feeding and sheltering the high-risk groups, materral health and child care, food aid for low-income pregnant and lactating women and under-nourished children of 1-5 years old, and quick disbursing lump-sum supplement income for impoverished pensioners; and (iii) opening multiple community resource centers. Such a program should explicitly seek resources and support from the external donors, private sector, and non-governmental organizations. xxx. The role of the Government is at the very core of development when it invests in institutions. By defining and protecting property rights, providing legal, judicial and regulatory systems, and improving the efficiency of the civil service, the Government introduces a set of rules, and thus, a stable and favorable environment for the functioning and expansion of the private sector. It also assists the Governmez', to lay a strong foundation for long term development by harnessing the chaotic forces of the market place. xxxi. Haiti is beset by institutional weaknesses which result in haphazard policy implementation. Investment in institution building should be an ongoing development process. In the arena of public spending, there are a number of inconsistencies as a result of chaotically complex planning, budgeting, monitoring and disbursement systems. For instance, the MP is in -xi - theory responsible for working with various planning units in sectoral ministries to draw up five-year development plans which are then translated into annual investment budgets. But, in fact, the MP does not have the capacity to plan effectively, neither do the sectoral ministries have such capacity. Long term planning was defined in the past by the MP without taking into account the financial and economic conetrainte of such a development plan. Moreover, the objectives of the plan were not linked to the proposed projects, as most of these projects were donor financed and MP had no jurisdiction to coordinate, evaluate, or monitor the projects. Further, the MEF sets the overall investment limits for the MP taking no account of the fact that donor disbursements would not take place if counterpart funds were not available to finance the Government's share of project costs. This complex and obfuscating system is inconvenient and impractical. Major institutional changes in the form of three-year rolling public sector investment programs (PSIP) and project selection and monitoring by the respective sectors should be emphasized. The MEF should be in charge of budgeting and disbursement. The HEF should be responsible for executing public investment, project analysis and the performance of sectoral ministries and public enterprises and the investment program. The MP's main role should be to prepare a three-year rolling PSIP in light of the possible availability of domestic and external resources and to focus on donor coordination of its financing. xxxii. Coordination between the Government and donors needs dramatic improvement, particularly in education, health, transport and agriculture sectors. A central unit should be established for such coordination. Much duplication exists because of lack of knowledge by MP of the work of government agencies, NGOs and donors. Donors do not have any responsibility of informing the ministries or each other of their activities. xxxiii. The commitments and disbursements of official aid to Haiti was uneven during the 1980s as a result of the political events. After generously supporting the reform efforts during 1986-87, official donors curtailed aid in 1988. However, bilateral aid, essentially humanitarian, has been channeled through NGOs since 1988. Haiti's recent return to democracy, along with its commitment to policy change should have a positive affect on aid flows. Aid commitments from official sources are projected to increase from the low levels of late 1988-89 to at least the levels of 1980-85 which is about US$145 million per year. Haiti, however, needs to mobilize increasing amounts of domestic resources to provide counterpart funds for higher aid flows. xxxiv. Barring any severe exogenous shocks, Haiti's economic deterioration can be stemmed, and growth in output and employment generated in the medium term. This calls for timely implementation of both macroeconomic and sectoral policies. The agenda for macroeconomic policies is fiscal discipline, domestic resource mobilization, monetary and external policies that control inflation and maintain competitiveness, and trade policies that are not biased against exports. These need to be complemented by sectoral policies with regard to pricing and expenditures together with productivity [... middle sections omitted for long document ...] Table 10.3: NUMBER OF PRIMARY SVXCOLS, FY8O-83, AND SECONDARY SCHOOLS, FYSO-89 __________ PRIMARY SCHOOLS -------------------------------------------..---------------- __--------------__------------------ T O T A L U R B A N R U R A L Total Public Private Total Public Private Total Public Private -------------------------------------------------------------- __-------------__----------------- FY80 2,996 958 2,038 1,197 335 862 1,799 623 1,176 FY81 3,271 994 2,277 1,283 344 939 1,988 650 1,338 FY82 3,221 1,000 2,221 1,245 348 897 1,976 652 1,324 FY83 3,241 1,000 2,241 1,348 381 967 1,893 619 1,274 SECONDARY SCHOOLS ------------------------------------------------------------ __------- Total Public Private -------------------------------------------------------------- __----- FY80 205 24 181 FY81 228 24 204 FY82 244 2S 219 FY83 290 26 264 FY84 314 26 288 FY8S 380 26 334 FY8S 376 26 360 FY87 414 28 386 FY88 466 30 426 FY89 503 34 469 * Estimates by BRH, Direction des Etudes Economiques. Source: Ministry of National Education, Direction de la Planification. T2blo 11.1: SUMMARY OF THE ROAD NETWORK INVENTORY, 1990 Length (km) Surface Type AADT -----------------------------------… (Veh/day) Good Regular Bad Total ____________________________________________________________________________________ Paved 1407 112.70 326.28 143.30 582.28 Percent 19.38 58.03 24.61 100.00 Portland Camont 3071 - 26.50 - 26.50 Asphalt Concrete 1768 - 211.66 50.90 262.56 o Asphalt Macadam 1001 18.10 88.13 38.00 142.23 Surface Treatment 891 96.60 - 64.40 161.00 Unpaved 72 68.90 547.16 1262.28 1878.34 Percent - 3.67 29.13 67.20 100.00 Gravel 100 58.10 307.00 713.03 1076.13 Earth 38 12.80 225.16 409.50 e47.46 Stone 21 - 16.00 139.75 164.75 --------------------------------------------------------- Total 388 181.60 873.44 1405.68 2460.62 Percent 7.38 35.60 57.12 100.00 Source: MTPTC estimates. Table 11.2: MTPTC RECURRENT BUDGET, 1985/88-1989-90 MTPTC Total a/ 65,815 61,996 60,600 66,003 55,748 _____________ Personnel 45,540 50,R24 62,187 63,002 52,376 Percent of Total 69.2 82.0 86.3 94.8 94.0 Intercity Road Maintenance (SEPRRN) Permanent Personnel 8,029 10,290 13,065 12,843 12,834 - Daily Workers 13,893 10,200 7,426 2,920 4,920 Fuel, materials and other 10,805 6,408 3,618 866 1,208 TOTAL 32,727 26,898 24,108 18,429 18,980 Percent of Personnel 67.0 76.2 86.0 95.9 93.6 Port-au-Prince Drainage and Road Maintenance (SEEU) -------------------------------------------------------- Permanent Personnel 690 2,043 2,616 2,803 2,774 Daily Workers 1,703 1,703 1,371 1,164 1,164 Fuel, materials and other 727 e83 480 19B 180 TOTAL 3,120 4,409 4,467 4,163 4,118 Percent of Personnel 78.7 85.0 89.3 96.3 96.8 ------------------------------------------------------------- I-----------------------_ a/ Excluding decentralized services reporting to MTPTC. Source: MTPTC. Table ;1.3: Road Indicators, 1986/87 Pop. Superficie GNP/cap km ---------- (min.) (1000 km2) -- 100 km2 --------------------------------------------------------------------- ______________ Haiti 6.1 28 330 4,000 14.3 Jamaica 2.4 11 840 17,700 160.9 Dominican Republic 7 49 710 19,000 38.7 Burundi 4.8 28 240 5,400 19.3 Rwanda 6.2 28 290 10,000 38.5 Lesotho 1.6 30 370 4,000 13.3 a/ A further 800 km is paved. Source: World Bank Indicators. U jA *'___2t14 <1~ ~ ~~~~~ ~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~14 '.U,,, Port de Pa,. CUBA REFU LIC OvA r NI I It I P." M Cap Ho.t,en JAMOAICA PUERTO a'co Q- S~~~~~ F, SAriso ( ooomh bordorvI,O. o -uS- M.,.. A' J 9ry~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 ro _ o ' " III, P.IRs,oI ~ ~ 0UoIr~i H AIT I d,SA0oIore. .r /d J _ cologco) *oods: g o 0 '-°Ih Va,ry h,,-d SUSo~U Horn.d G-d.S~o D,y Annval C,Ieroge raifoll in mivlh-evers Pr$sMsOd. - ma,,, iighnays .M Secondary roads Tertiary road T.., --nierroohonaf boundt7ry tSs!er7e R KIIOME0ERS 0 10 20 30 40 50 Briiodsis MILES 0 )0 20 30 Mi l to,Cohv \ * Un)or.pof kS/rIshPIoo1se hoPfnoIgAOOO Ss foperc ISU niy -- teremioo GRAND }5 _cCriln {_ CA (010 _ ~~~ w .~Rosro Rrori1 /<^ Dr M.". Moo / .o PORT AU PRINC.< < _ v r P.,. I o- d. N,P,,. Ao O'-.-oo --s,,CI, -d S .~~, Mineo~~~rn G-Od Leslols ~ ~ AnI. Consporoi I e _T7m'fodere>X* o*-OCo0odeBe G, J o. vnv.00{ row 50,000 OOvOOOvIO.7 FC O F7FA.Ir.V ,0*OoO7U Ao¼ O Y F ................ o 000 1 0 .PI' 0 0 0 0 ~ 0...-T -8-,' 0r SEPTEMBER 1988